10Y annualized return is
very good
at 11.2% per year
TSCO has met or exceeded earnings expectations in
few
recent quarters (4/10)
Moderate Price-to-Earnings Ratio
Attractive Price-to-Sales Ratio
Strong Return on Equity
Healthy Gross Profit Margin
Strong Interest Coverage Ratio
Acceptable Current Ratio
🏆 Strong Financial Performance
💪 Customer Engagement and Retention
🏗️ Strategic Growth Initiatives
🚀 Forecasted Growth
📈 Strategic Initiatives and Innovation
🧑🌾 Diverse Product Offerings
High Price-to-Free Cash Flow Ratio
Elevated Price-to-Book Ratio
Low Operating and Net Profit Margins
High Debt Levels
Weak Quick and Cash Ratios
⚠️ Margin Pressures
📉 Economic Headwinds
Overall, Tractor Supply Company demonstrates strong business quality with solid financial performance, customer engagement, and strategic growth initiatives. While facing some margin pressures and economic headwinds, its future prospects appear promising with forecasted growth and innovation potential.
Analysis Date: January 30, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Tractor Supply Company is a store that sells products for people living in rural areas, especially those who have farms or pets. They offer a variety of items like animal food, tools, gardening supplies, and clothing for work and play. With over 2,000 stores across the U.S., they help customers take care of their animals and land. Founded in 1938, Tractor Supply aims to support farmers, ranchers, and anyone who enjoys outdoor living.
Streams of revenue
Estimations for reference only
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Latest News
TSCO's first-quarter results are likely to show sales growth, driven by strategic initiatives and strong customer engagement amid near-term cost press...
Beyond analysts' top -and-bottom-line estimates for Tractor Supply (TSCO), evaluate projections for some of its key metrics to gain a better insight i...
BRENTWOOD, Tenn.--(BUSINESS WIRE)--Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States, announced today t...
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$71.00
Current Market Price: $52.21
IV/P Ratio: 1.36x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
26.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for TSCO
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (25.39)
P/B ratio ≤ 1.5 (12.32)
Current ratio ≥ 2.0 (1.43x)
Long-term debt < Net current assets (5.07x)
Margin of safety (26.0%)
TSCO does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
47.56%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-29)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
34.06%
Higher values indicate better efficiency in production
TTM (as of 2025-04-29)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
7.40%
Higher values indicate better overall profitability
TTM (as of 2025-04-29)
The return on equity (ROE) of 49.01% reflects the company's ability to generate profit from shareholders' equity, indicating strong profitability.
The gross profit margin of 34.06% indicates that the company retains a significant amount of revenue after covering the cost of goods sold, showing effective cost management.
The operating profit margin of 9.86% and net profit margin of 7.40% are relatively low, suggesting potential challenges in controlling operating expenses and maximizing net income.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
2.39x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.43x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
An interest coverage ratio of 26.88 indicates that the company earns significantly more than it needs to cover its interest expenses, showcasing strong financial stability.
The current ratio of 1.43 suggests that the company has sufficient assets to cover its current liabilities, indicating good short-term financial health.
The debt-to-equity ratio of 2.39 indicates a high level of debt compared to equity, which may pose risks during economic downturns.
The quick ratio of 0.20 and cash ratio of 0.11 suggest potential liquidity concerns, as the company may struggle to meet short-term obligations without selling inventory.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Tractor Supply Company achieved record financial results for the fiscal year 2024, with net sales reaching nearly $14.9 billion, a growth of 2.2% compared to 2023, and a diluted EPS of $2.04. Additionally, the company generated a record $1.4 billion in operating cash flow, demonstrating strong cash generation capabilities.
The company reported record-high customer engagement metrics, with total active customer accounts at all-time highs and high-value customer retention at record levels. The Neighbor's Club loyalty program continues to be a key differentiator, representing over 80% of sales at Petsense.
Tractor Supply is focused on its Life Out Here strategy, which aims to expand its market share and total addressable market to $225 billion. The acquisition of Allivet and the continued rollout of new stores and remodels demonstrates the company's commitment to growth.
Operating margins have faced some pressure due to increased SG&A expenses and the impact of deflation in commodity-based products. The gross margin decreased by nine basis points year-over-year, reflecting challenges in the retail environment.
For fiscal 2025, Tractor Supply is forecasting net sales growth of 5% to 7% and comparable store sales growth of 1% to 3%. The company anticipates headwinds moderating, which positions it well for growth.
The company's Life Out Here 2030 strategy includes new initiatives such as direct sales and Final Mile, which are expected to drive growth. Additionally, the integration of Allivet into the business is projected to enhance its offerings and appeal to pet owners.
Tractor Supply's expansion into the pet prescription market through Allivet and the continued growth in the backyard poultry segment align with current consumer trends towards self-sustainability and pet ownership, presenting significant growth opportunities.
Despite positive forecasts, the company acknowledges ongoing economic uncertainties, including deflation in key product categories and potential impacts from tariffs under the new presidential administration, which could affect profitability.